The dream of any investor is to find a cheap investment that will pay off many times over in the long run. There is nothing wrong with this, but the problem is that there are lots of cheap investments that are cheap simply because they are worthless or have no future potential. In the vast majority of cases, they are cheap for good reason, but very rarely you may be able to spot a stock with high growth potential. This is particularly true of the biotech industry, which is a high risk high reward environment. Investing in the right company with an exciting new drug can turn into a goldmine overnight. In this context, one interesting stock worth looking at is Keryx Biopharmaceuticals (KERX).
Back in April, the company announced that Phase III trials for perifosine, which is a colorectal cancer drug, had not attained its target improvement goals in the chances of survival compared to a placebo. This was the company’s flagship drug. The stock price has plummeted since and continues to struggle. The company has declared that it is now concentrating on another drug in its pipeline, Zerenex, which is used for the treatment of chronic renal failure. Zerenex may not have gotten the attention that it deserved earlier because of the focus on perifosine and the fact that Zerenex has several competitors. The stock now appears to be a straightforward play depending on the outcome of successful trials as well as approval by the FDA. To continue reading, click here.